Kelompok 1 - Perekonomian Masa Orde Baru

Summary

This presentation explores the economic landscape during Indonesia's New Order era under President Soeharto. It discusses the economic policies that aimed to stabilize the country, including deregulation, fiscal discipline, and monetary control. The presentation also highlights the economic downturns and crises that arose due to corruption, political instability, and loss of public trust. A comparison is made between the economic systems of the Old Order and the New Order, showing the shift from a liberal economy to a mixed system, with improved growth and international cooperation. The presentation concludes with a reflection on the reforms that followed.

Takeaways

• 😀 Orde Baru (New Order) refers to the era under President Soeharto's leadership, beginning after Soekarno's presidency in Indonesia.
• 😀 The New Order era was based on the ideology of Pancasila and the 1945 Constitution, aiming to stabilize and control national life.
• 😀 The economic policies during the Orde Baru period were designed to stabilize and grow Indonesia's economy, focusing on decontrolling and reforming the economic structure.
• 😀 Key economic measures in the New Order included removing restrictive regulations, disciplining the national budget, and managing the money supply to control inflation.
• 😀 The economic decline during the Orde Baru was marked by the 1997 financial crisis, exacerbated by corruption, collusion, and nepotism (KKN).
• 😀 Political instability also arose due to corruption within the government bureaucracy, leading to a loss of public trust in the regime.
• 😀 The social crisis during the Orde Baru era saw people either supporting or calling for Soeharto's resignation, leading to greater unrest.
• 😀 The reformasi movement emerged, advocating for legal reforms and justice, especially in response to corruption and the lack of accountability in government.
• 😀 The economic system of Orde Lama (Old Order) was characterized by a more liberal and command economy, with economic instability and limited foreign cooperation.
• 😀 In contrast, the New Order adopted a mixed economy, focusing on industrialization, fiscal management, and improving relations with foreign countries.

Q & A

What is the 'Orde Baru' in Indonesia?

The 'Orde Baru' refers to the period of government under President Soeharto, who took office as the second president of Indonesia, replacing Soekarno. This era is marked by a shift in governance and economic policies, focusing on restoring the nation's values based on Pancasila and the 1945 Constitution.

What were the main economic policies during the Orde Baru?

During the Orde Baru, the economic policies focused on stabilizing the economy by eliminating outdated regulations, controlling the national budget, implementing monetary policies to control currency circulation, and facilitating the availability of credit to support economic activities.

What factors led to the economic decline in Indonesia during the Orde Baru?

The economic decline during the Orde Baru was caused by a series of crises: an economic and monetary crisis due to Indonesia's debt and corruption, a political crisis rooted in the pervasive practice of corruption, a loss of trust in the government, and social unrest with divided public opinion about Soeharto's leadership.

What was the role of KKN (Corruption, Collusion, and Nepotism) in the decline of the Orde Baru?

KKN played a significant role in the decline of the Orde Baru. It created a culture of dishonesty within the bureaucracy and eroded public trust in the government, both domestically and internationally. This corruption ultimately led to political instability and a lack of confidence in the administration.

How did the Orde Baru government approach social issues?

The Orde Baru faced social unrest, with divided public opinions. Some supported Soeharto, while others demanded his resignation. This conflict contributed to the government's challenges in maintaining stability and addressing the needs of the people.

What was the economic system like during the Orde Lama, and how did it differ from the Orde Baru?

During the Orde Lama, the economic system was characterized by liberal and command systems, with limited private ownership, a closed economy, and restricted access to factors like education and technology. In contrast, the Orde Baru adopted a mixed economic system, promoted economic growth, and encouraged international cooperation, leading to more open trade and lower inflation.

What was the significance of economic stabilization programs in the Orde Baru?

Economic stabilization programs were crucial in the Orde Baru era. They were aimed at restoring balance to the economy by implementing policies like decontrol of economic activities, fiscal discipline, and a more regulated monetary system, which helped the nation recover from earlier economic challenges.

What were the key causes of the political crisis during the Orde Baru?

The political crisis during the Orde Baru was largely fueled by the growing practice of KKN within the government. This resulted in the erosion of political legitimacy and the rise of public dissent, both at home and abroad, leading to decreased trust in the government and political instability.

How did Indonesia’s international relations affect its economy during the Orde Baru?

Indonesia's international relations played a significant role in the Orde Baru’s economy. The government pursued foreign cooperation to boost economic growth, resulting in better access to external trade and investment. However, the global community’s growing skepticism due to internal corruption and political instability later affected foreign confidence.

What were the long-term consequences of the Orde Baru’s economic policies?

The long-term consequences of the Orde Baru's economic policies include a mix of successes and failures. While the period saw substantial economic growth and lower inflation, the prevalence of corruption, political unrest, and rising social divisions led to eventual instability and the eventual downfall of the regime.